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TRANSCRIPT
Asian Development Bank: Work on climate technologies
and follow-up actions to CTCN assistance
CTCN Regional Networking Meeting for NDEs
Bangkok, Thailand
29-30 April 2015
Outline of Presentation
Background CTFC and UNEP partnership
CTFC Experience in promoting climate technology
• Work with Developing Member Countries
• Involvement with Private Sector in the region
• Model for promoting climate technology
Supporting CTCN work with NDEs
ADB’s Climate Technology Finance Center
CTFC - established in 2012 to accelerate development and deployment of climate change mitigation and adaptation technologies in Asia and the Pacific
Working in partnership with UNEP; Supported by: GEF, Japan, Republic of Korea, VITO NV.
ADB-UNEP collaboration [ Pilot Asia-Pacific Climate Technology Network and Finance Center
CTNFC: ADB–UNEP CollaborationCenter objective - To accelerate access to climate mitigation and adaptation technologies
Facilitating Technology
Network
Building Technology
Centers
Catalyzing Project & Venture Capital
Investments
Pilot Marketplace
for Low-Carbon
Technologies
Network Facilitation and Development
Enhancing Enabling Environment
Investment Facilitation
Capacity Building
1 2 3 4 5 6
Enabling Policies
Technology Main-
streaming
Technology Finance Center (ADB)
Technology Network (UNEP)
Climate Technology Finance Center:
1. Working with ADB’s Developing Member Countries (DMCs) to mainstream climate technologies into development plans.
• How: Provide climate technology assessments, climate change risk profiles as inputs to:
Country Partnership Strategies (Completed: Bhutan, Papua New Guinea; Ongoing: Mongolia, Viet Nam, Pakistan, PRC)
Country Operations Business Plans
DMC National and/or sub-national development and investment plans (Hunan and Ningxia, PRC)
PRC: Focus on Hunan and Ningxia to mainstream climate technologies into provincial devt and investment plans
Process for assistance
Deliverables
• Recommendation of emerging climate technologies • Candidate pipeline climate technology investment projects • Recommendation to access potential financing sources
Assistance
• Climate tech assessment • Potential financial sources • Analysis of policies;
enabling environment
Long term development planning and targets
CTFC-funded National Consultants
CTFC Ningxia and Hunan Provincial Governments
PRC Central Government
RSDD EARD - PRCM
PRC: Examples of technologies assessed for Hunan
Mitigation Biomass power technology Fuel cells for mobile and stationary applications High efficiency and low wind speed wind turbine Bio-refinery technology Ground source heat pump heating / cooling Compressor leak reduction technology (gas transport)
Adaptation Biotechnology for climate change adaptation of crops Water-efficient fixtures and appliances Leakage management in piped systems Water reclamation and reuse
Climate Technology Finance Center:
2. Promoting the use of climate technologies into ADB’s public sector pipeline projects
• How: Provide technical support and advisory service at project design and preparation phase for loans, grants, technical assistance projects.
Tonga: Outer Island RE project
Bangladesh: Options for scaling up RE technologies for deployment in rural areas
SERD projects (CAM, VIE, INO) on urban water and river basin management – benefit from expertise in flood management technologies/techniques
Bangladesh: Pre-feasibility study on options to scale-up rural solar and wind hybrid energy technologies
Deliverables
• Pre-feasibility report• Recommendation of 3 options for
pilot project• Recommendation for policies based
on lessons from pilot
Assistance
• Assessment of climate technology options• Recommendation of financing options• Selection of site, resource, technology,
business model• Policy formulation assistance
RE Policies
CTFC-funded International
& National Consultants
CTFC
Grid Extension
Plans
Government of Bangladesh
RSDD SARD - BRM
Mini Grid Policies
Process for assistance
Bangladesh: Results - Power Generation Options
Upgrading of bagasse-based cogeneration in sugar mills
• Expand power generation using combined heat and power from sugarcane bagasse.
Poultry manure to biogas to power
• Waste from poultry farms as fuel through an anaerobic digester system → treat chicken manure and produce enough biogas to generate needed power and heat.
Solar nanogrids
• Link households in rural communities to a communal solar power system → connected to a small-scale agricultural or industrial application, like an irrigation system.
Solar minigrids
• Solar photovoltaic plants with a localized distribution network to a single village, or cluster of villages.
Tonga: Outer Island Renewable Energy ProjectAssistance in design/implementation of components for a 0.8 MW* solar power capacity connecting existing diesel networks of 3* outer islands
Process for assistance
ADB
CTFC
Tonga Outer Island Renewable Energy Project
Grid-connected solar – 1.25 MW
Solar Home System (SHS)
Solar pumping
CTFC Solar expert advisory service
Advisory Assistance
Design improvement of grid-connected solar system for increased safety and reliability Configuration of the right size for the SHS Coordination on co-financing for the solar pumping
* Total solar power project = 1.25 MW covering 9 islands
Climate Technology Finance Center:
3. Working with Venture Capital (VC) and Private Equity (PE) Funds to encourage greater level of investments into climate technologies in the region.
• Build stronger pool of climatech entrepreneurs = more attractive to investors
• Look for new sources of investment capital
• Improve connectivity: potential investors and entrepreneurs
4. Setting up of IPEx Cleantech Asia
• 1st Low Carbon Technology Exchange and IP Platform in Asia and the Pacific.
Climate Technology Investments via VC &PE Funds
CTFC AS CLIMATE INVESTMENT CATALYST
REGIONAL NETWORK
• Connect cleantechinvestors and start-ups
VC & PE FUNDS SUPPORT
• Catalyze risk capital• Assist first-time funds• Engage non-
institutional VCs
START-UP ACCELERATOR PLATFORM
• Support start-ups via accelerator and incubator programs, (bootcamps)
CLEANTECH INVESTMENT INDUSTRY SERVICES
RESEARCH THINK TANK• Analyze best investment practices and frontier investment sectors• Support pilots of new investment innovations • Identify investment barriers
IPEx Cleantech Asia = match-making platform bringing together selected low carbon technology holders worldwide to technology acquirers in Asia
To LCT Providers
Monetize existing IP Assets
Access to rapidly developing markets
Technology development collaboration
De-risk deployment
Access to counterparties and markets
To LCT Adopters
Access to proven low carbon technologies
Fast track valuation process
Commercial, technological, and legal risk mitigation through enhanced due diligence
Access to financing
The Marketplace will bridge the gap by providing services to facilitate transactions…
Integrating CTFC components:Climate Technology Promotion Mechanism
CTPM
Policy
ClimateTechnology Selection
MarketsCapacity Building
Finance
Supporting CTCN Work with NDEs
ADB’s public sector investment pipelines are developed through country-level dialogue and planning.
Long term development planning and targets
Country Partnership Strategy ADB Member Governments• Ministries of Finance• Ministries of Climate Change and
Environment• Ministries of Energy
Country level dialogue
Country Operations Business Plan
Pipeline entry/Development of ADB investment projects
Input from other processes (e.g. NAMA/NAP development, TNA,
CTCN activities)
Supporting CTCN Work with NDEs
NDEs may consult with relevant government Ministries (MOF, Planning, etc.) to ensure that CTCN supported projects are incorporated into the project pipeline being supported by ADB.
Country Partnership Strategy
Country level dialogue
Country Operations Business Plan
Pipeline entry/Development of ADB investment projects
Supporting CTCN Work with NDEs
NDEs can also consult with ADB Resident Missions in their countries for possible support.
NDEs are encouraged to contact Private Sector Operations Department of ADB for private sector investment in climate technology.
ADB CTFC team can also help facilitate this consultation and cooperation.
Country Partnership Strategy
Country level dialogue
Country Operations Business Plan
Pipeline entry/Development of ADB investment projects
Thank you.
Xuedu Lu
Advisor, Regional and Sustainable Development Department
Asian Development Bank